Alliance Leicester Mortgage Looking for advice

paulo1888

Hi there, On 30 June 2012, I will have 3 years remaining on a 25 year Alliance & Leicester mortgage to finish in 2015. I was simply looking to book a fixed rate out for the remaining 3 years. The Santander website quoted a 3 year fixed rate at 4.04% with no fee. But when I phone up I am quoted 4.49 as I am an A&L customer. It really doesn’t sound a good deal. Can anyone advise me the best way to proceed with 3 years remaining? I cannot move to another lender because their minimum term is 5 years.

Many Thanks

Gary123456790

Hi,

Do you have a high LTV as I've remortgaged a few months ago from A&L to Santander and we went with 2 years fixed @ 3.49% with no fee - we're at below 50% ltv.

There were slightly lower ones with fees, but didnt justify the fee with what we have left to pay.

Gary.

paulo1888

Hi Gary
Thanks for the reply.

Our remaining mortgage is around £50,000 and the house valuation is around £170,000.

Today, they also quoted me a 2 year fixed rate at 4.19% with no fee. Still doesn't seem like a good deal. I phoned last week and was quoted different rates, like 3.19% for 2 years, and 3.99% for 3 years.

Again Many Thanks for the reply

asandwhen

paulo1888 wrote: »

Hi Gary
Thanks for the reply.

Our remaining mortgage is around £50,000 and the house valuation is around £170,000.

Today, they also quoted me a 2 year fixed rate at 4.19% with no fee. Still doesn't seem like a good deal. I phoned last week and was quoted different rates, like 3.19% for 2 years, and 3.99% for 3 years.

Again Many Thanks for the reply

Can you not move to another lender on a deal that allowes overpayments on a 5yr?

paulo1888

Thanks, I'll certainly have a look at that, but I,m thinking that there would be a penalty for taking out a 5 year fixed rate and finishing after 3 years. I,m not sure with 3 years left to run that moving lenders would a viable option.

asandwhen

paulo1888 wrote: »

Thanks, I'll certainly have a look at that, but I,m thinking that there would be a penalty for taking out a 5 year fixed rate and finishing after 3 years. I,m not sure with 3 years left to run that moving lenders would a viable option.

According to the First direct website you can remortgage with 3 years left - they are offering a fee free rate of 3.49%

paulo1888

asandwhen

I really appreciate that. I didn't think this was an option. I,ll head to the firstdirect website and explore my options.

Again, Many Thanks

paulo1888

Tried first direct, unfortunately we didn't fit the income criteria as the only mortgage they can offer for interest only is an offset mortgage and we need a joint income of around £50,000 per annum.

It's quite difficult to figure this out as the interest rates for existing A&L and Santander customers are not online. We have a Santander current A/C paying in over £1000 yet they say we do not qualify for any "Loyalty Mortgage" even though the terms and conditions state

"The Loyalty range is available to existing Santander mortgage customers moving home or Santander current account customers holding their main account for 3 months or longer, crediting £1,000 a month and 2 active Direct Debits or Standing Orders paid within the last month"

Any thoughts would be appreciated

asandwhen

Do you have a repayment vehicle? If you are just going interest only why dont you apply for a 3 year fix with anyone (over 5 years) when the 3 year fix has finished and you go onto the SVR just pay it off without any penaulty.

paulo1888

That sounds a great idea. I would honestly never have thought of that. The penalty is with ending the "tie in deal" early but not ending the mortgage term. That's what I'll aim to do.

Many Thanks for taking the time to reply.

caw1965

paulo

I think I am in an identical situation to you. I have about 3years left on my total mortgage. My fixed rate deal is ending next month and I'll go onto Alliance and leicesters SVR of 4.99,
I went to A&L website and was redirected to Santanders attractive page with the 3.19% deal. I rang Santander and was told I couldnt have the 3.19% remortgage rate as A&L are part of the same company ! Ok I said, I that means I should go onto Santanders SVR of 4.24. They said No.
They also told me they couldnt give me any quotes for a new fixed deal as A&L mortgages are a different company and they dont have access to my details ! Work that one out.

I was told to ring A&L which I did and they quoted a 2year at 3.79% with £499 booking fee or a 3year at 3.99 . Both worse than Santanders !! I am now a little annoyed with both of them as I feel they are squeezing the A&L customers with deliberately worse rates!!

The issue with the Loyalty Mortgage deals probably stems from them still treating A&L as a semi-seperate entity ?